Two key limitations of the proprietorship form of business involve potential difficulty in raising the necessary capital and the presence of unlimited personal liability for business debts.

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Proprietorships are businesses owned by a single individual, meaning that the owner is personally responsible for all business debts and obligations. This can be a significant risk, as it means that the owner's personal assets could be used to pay off any outstanding debts. Additionally, because proprietors do not have access to the same sources of capital as larger corporations, they may face difficulty in raising the necessary funds to start or grow their businesses.

Two Key Limitations of the Proprietorship Form of Business Involve